The Hyderabad-based Zenotech Laboratories Ltd is amalgamating with Credence Pharmaceuticals Ltd and Hemarus Healthcare Ltd by the end of January, 2006. Post-amalgamation, Zenotech will have strong presence in the fields of biotechnology and oncology business, wide product portfolio and manufacturing facilities, Dr Jayaram Chigurupati, chairman and managing director of Zenotech told Pharmabiz.

Credence having its strengths in oncology segment is also adding up new facilities. It is developing one formulations and one bulk manufacturing facility and both are likely to be commissioned by the end of 2006.

The company has already finalised the swap ratio of 2:3 and 5.1:1 respectively. The company is issuing two equity shares of Rs. 10 each for every three equity shares of Credence. It will issue 51 equity shares of Rs. 10 each per share against every 10 equity shares of Hemarus.

The company is setting up US FDA and EU approvable biologicals manufacturing facility at Turkapalli Village, near Hyderabad. The company is making an investment to the tune of Rs. 35 crore. The manufacturing facility is expected to be commissioned by February, 2006. The multi-product facility will be used to manufacture about 10 biogenerics produced in E. coli and in mammalian cell cultures, Dr Chigurupati added.

Zenotech is fast emerging as a specialty generic injectables company with a biotech core. The company’s strategy is to use generic biopharmaceuticals as core products and complement them with chemical products in specific therapy areas like oncology, gynaecology and neurology. The company has launched more than ten chemical oncology injectables in India and plans to launch several more products soon. The company’s two biosimilar oncology products, rGM-CSF and rG-CSF are in final stages of phase III clinical trials and are likely to receive marketing approvals in next few months. A third biosimilar product rIL-2 has entered phase III clinical trials.

Zenotech has a unique distinction of being the first Indian company to initiate clinical development of a generic monoclonal antibody, Rituximab, an oncology product for the treatment of non-Hodgkins lymphoma.

During May 2005, Zenotech has signed a letter of intent with a US-based generic company to roll out its generic biotech products in the US and Canadian market. Dr Chigurupati declined to name the US partner.

The company has started its international operations by setting up a wholly owned subsidiary in Brazil. The company’s Brazilian facility has received ANVISA approval in June, 2005 and it currently in the process of filing product registration dossiers for obtaining marketing approval for sales in Brazil.

The company also has a subsidiary in Nigeria to market products in West Africa and a representation office in Vietnam, where the marketing operations of chemical oncology products began in July, 2005. The international operations are a part of the company’s BRIMS strategy in emerging markets. Brazil, Russia, India, Mexico and South Africa are core countries where the company plans to have its own sales force to market products.

Zenotech is planning to issue Rs. 100 crore securities through public issue or global depository receipts/FCCBs. At the end of March 2005, Zenotech's equity capital stood at Rs 14.93 crore.